BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually beginning to take notice of the aerospace sector’s recovery, growing progressively more optimistic about the prospects of the entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view about the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, except it’s for a complete sector.
She’s also far more bullish on shares of Boeing (ticker: BA), raising her price objective to $274 from $250 a share. Liwag indicates that there is a “line of sight to a much healthier backdrop.” That is news that is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and travel stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., based on data from the Transportation Security Administration, probably the lowest number during the pandemic and down an incredible ninety six % year over year. The number has since risen. On Sunday, 1.3 million folks passed through TSA checkpoints.
Investors have already noticed the situation is getting better for the aerospace industry as well as broader travel restoration. Boeing stock rose in excess of twenty % this past week. Additional travel related stocks have moved too. American Airlines (AAL) shares, for instance, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Things, nonetheless, can easily still get much better from here, Liwag noted. BoeingStock are down aproximatelly forty % from their all time high. “From our conversations with investors, the [aerospace] group is still primarily under owned,” published the analyst. She sees Covid 19 vaccine rollouts and easing of cross country travel restrictions as further catalysts which will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Additional aerospace suppliers she suggests are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The various other Buy-rated stocks of her include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her far more bullish view. More than 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was lower than forty %. FintechZoom analysts, nonetheless, are having problems keeping up with the latest gains. The regular analyst price target for Boeing stock is just $236, below the $268 level which shares were trading at on Monday.
BoeingStock was down about 0.5 % in trading Monday. The S&P 500 and Dow Jones Industrial Average were both down somewhat.
BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.